A long-term capital outflow is recorded in the balance of payment as a
Answer Details
A long-term capital outflow is recorded in the balance of payment as a "debit on the capital account". This is because a capital outflow represents an outflow of domestic assets (such as investments or loans) to foreign entities. As a result, it leads to a reduction in the domestic capital stock, and is therefore recorded as a debit (or negative) entry on the capital account of the balance of payments.